Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): The selling price of the beach umbrellas is $10 per unit. July 33.500 October 23.500 August 77.000 November 10.000 September 46,000 December 10.500 b.All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65in the month following sale 5% uncollectible Sales for June totaled $260,000. c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be June 30 80.050 feet September ? feet 30 1-b. Prepare a schedule of expected cash collections, by month and in total, for the third quarter Milo Company Schedule of Expected Cash Collections July August September Quarter Accounts receivable, June 30: July sales August sales September sales Total cash collections S o s o s os 0 2. Prepare a production budget for each of the months July-October August September October Milo Company Production Budget July Budgeted unit sales Add: Desired ending finished goods inventory Total needs Less: Beginning finished goods inventory Required production in units 0 3-a. Prepare a direct materials budget for Gilden, by month and in total, for the third quarter. (Round your Unit cost of raw materlals to 2 decimal places.) Milo Company Direct Materials Budget July August September Quarter Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Add: Desired ending raw materials inventory Total units of raw materials needed Less: Beginning raw materials inventory Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to be purchased 3-b. Prepare a schedule of expected cash disbursements for Gilden, by month and in total, for the third quarter. Milo Company Schedule of Expected Cash Disbursements July August September Quarter Accounts payable, June 30 July purchases August purchases September purchases Total cash disbursements S 0 S 0S 0S 0